Among the leading light commercial vehicle financiers in India, the popular ones are ICICI Bank, HDFC Bank, Union Bank and State Bank of India. As part of the auto financing schemes, most of them do offer various terms and conditions for their light commercial vehicle (LCV) finance. The criterion for loans, repayment terms, conditions and mode of repayment varies from one automobile financier to another.
Many of the LCV financiers do the hypothecation funding while few also undertake hypothecation transactions. On service charges, the financiers usually ask for a 2.5% of financing amount or a specified sum whichever is higher and origination charges. In case of prepayment, some of them ask for penalty that goes to the tune of 4% of the principal outstanding with the borrower. Finally, service tax and other government taxes are levied as applicable from time to time.
The leading LCV loan providers ensure the finances to any individual or a partnership firm or a company with more that a year of business exposure. The loan amount varies, depending upon the precise needs of the consumer and terms and conditions as determined by the loan provider. Finances can even be of 100% of the chassis while body funding of the vehicle can be provided for in case of specific requirements.
ICICI Bank, one of the leading LCV loan providers in India, provides for finance on vehicles of Ashok Leyland, Tata Motors, Eicher, Swaraj Mazda and Escorts. The range of financing includes loans for new LCVs, refinance on used vehicles, balance transfer on high cost finance, top up on existing finance, working capital finance. The ICICI Bank LCV loan services are available in all the important locations and branches across the country. The documentation and processing of the LCV loan is also reasonably simple and does not take much of a time. The earliest that ICICI Bank claims the finances can be sanctioned is 4 hours though usually the whole process is over within a fortnight or so.
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